NSE Nifty 50 Looks Firm on Technical Fundamentals: Analysts Say

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On Thursday, Nifty closed up 0.64% at 16,628 – Photo: Shutterstock

NSE Nifty 50 would continue its positive advance on Friday as it reviews technical charts despite signals of stress from global markets, analysts told Capital.com.

“A decisive break above 16,700 in the Nifty would fuel further momentum towards 16,900. We maintain our positive bias and recommend focusing on sectors and themes that are gaining ground,” said Ajit Mishra, vice-president. President (Research) at Religare Broking.

According to Osho Krishan, Senior Analyst (Technical and Derivative Research) at Angel One: “The technical structure is encouraging as the market has been swinging in a tight range for the past couple of trading sessions and is seeing buying interest at the lower levels. Also, from a technical perspective, the index formed a strong “bullish engulfing” pattern on the expiry day, which is an intriguing factor for bulls.”

“As for the levels, the unfilled gap on the downside of the 16,370-16,430 odd area has already proven itself in providing strong demand and should provide immediate support. While on the contrary, 16,740 are likely to act as immediate resistance, and any decisive breach above the same could trigger further momentum in the period ahead,” Krishan added.

Hot Stocks

Ultra Tech

Shares of UltraTech Cement, India’s largest cement producer, will be in focus after the company announced plans to invest INR 128.86 billion ($1.7 billion) to expand its production capacity by 22.6 million tons per year at $76 per ton. An increase in capacity has been approved by the company’s board of directors, which would be through a combination of brownfield and greenfield expansion.

Trust Industries

Investors are said to be watching Reliance Industries, after Reliance Group company BP Mobility (operating under the Jio-bp brand) signed a three-way partnership agreement with MG Motor India and Castrol India to explore mobility solutions for electric cars. According to a report, the companies will explore setting up four-wheel electric vehicle charging infrastructure across the country and expand Castrol’s existing automotive service network to meet the needs of electric vehicle owners.

Nice closing on Thursday

On Thursday, Nifty closed up 0.64% at 16,628, with Reliance Industries, Bajaj Finserv, Sun Pharmaceutical Industries, Tata Consultancy Services and HCL Technologies posting gains. Losers included Apollo Hospitals Enterprise, Hero Motocorp, Eicher Motors and Housing Development Finance Corporation, among others.

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“After a lackluster start, markets rebounded strongly on renewed optimism as investors swallowed up recently beaten information technology and oil & gas stocks. In fact, Indian stocks outperformed other Asian peers, which mostly ended in the red. Technically, after a muted open, the Nifty took support near 16450 and reversed the trend,” said Shrikant Chouhan, Head of Research on stocks (retail) at Kotak Securities.

“A promising reversal formation on the intraday charts and a long bullish candle on the daily charts indicate a new uptrend from current levels. For day traders, 16,550 would act as a trend-deciding level, above which the Nifty could rise as high as 16,720. In case of further upside, the index could climb as high as 16,800. On the other hand, below 16,550 the uptrend would be vulnerable and could falter to 16,450,” Chouhan added.

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